Broadcom's shares soared 12% in premarket trading on Friday as the chipmaker's strong revenue forecast helped restore some confidence in AI chip demand after a bruising sector-wide selloff following rival Marvell Technology's bleak outlook.

Revenue from the company’s custom AI chips is soaring, with more potential customers in the pipeline.

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The AI chipmaker offered an upbeat second-quarter outlook that was a silver lining in the otherwise downtrodden AI trade.

Hock Tan on Broadcom earnings $4 billion AI sales, chips, VMware and VCF, cloud hyperscalers, software infrastructure and semiconductor tariff impact.

Broadcom's AI revenue growth, financial strength, and valuation at $202/share highlight its investment potential. Read more on AVGO stock here.

Broadcom Inc. are the No. 1 and No. 2 AI plays in tech. Since peaking in mid-December of last year, Broadcom shares have been under pressure, down on sympathy with other semiconductor stocks and the general confusion about the economy,

Broadcom shares rose after the chip maker said quarterly revenue jumped. Artificial-intelligence revenue jumped 77% from a year earlier to $4.1 billion last quarter. Overall, revenue grew 25% to $14.9 billion,

Nvidia sells the lion’s share of the parallel compute underpinning AI training, and it has a very large – and probably dominant – share of AI inference.